Rick, Your first example isn't a fan. The tape starts a bar earlier on that one. On the second the fan my be more because of the decreasing volume BO, vs taping to a decreasing volume bar. Some thoughts on tapes: They are our smallest containers. When we see a VE of a channel we adjust and accelerate our traverse. Same with the tapes. Even with lower volume we still annotate a steeper tape that accelerates or extends. Since we are using bar ends (tops and bottoms) to draw them initially, why redraw a new tape if the bars are mostly contained in the tape? Waiting until the close outside a LTL to redraw appears to be a way to tape without adding too much clutter by drawing every 2 bars, and dropping to a bar to bar fractal level. Regarding the fanning, say we are taping a dominant move. We would try to tape to an increasing volume bar if possible. But with a low volume bar we might need to fan to get there. For example moving out of a sym pennant, where we might use bar 1 and 3 for the tape. Sort of like fanning our channel on a FBO. The pennant example I gave doesn't jive with the pennant in your example, but occasionally I see some other ways pennants or flags are taped. See the attached for an example cut from Mr Black's recent pic.
Does anyone see a problem with using the following measurement for price velocity. dP/dt = the price change from open to close for a bar within a given time interval. So for ES one could say that if price went from 784 (O) to 785 (C) in 5 min, then the velocity was 1 point/5 min. You could sign it or use an absolute value. There could be other ways of doing this but one way NOT to do it is to use the high - the low of a given bar because this has already been defined as the volatility. I appreciate that the measurement is arbitrary in the sense of picking a time frame and as well doesn't look at how price reaches that closing value. TIA lj
Thanks nkhoi but I didn't want to use it as an indicator in the sense of plotting it out on a chart. It is something both Jack and Spyder have talked about and I just wondered what people thought about measuring it the way I described. Here's a Spyder post from last fall talking about it http://www.elitetrader.com/vb/showthread.php?s=&postid=2119595&highlight=price+velocity#post2119595 and although he calls it 'money velocity', I think that term, in this case, can be used interchangeably with price velocity. lj
lj, The selection of what to measure depends on what you are trying to accomplish - which isn't clear from your post. I can't think of what the measurement you propose would accomplish for me, but I'd be happy to be told.... - palinuro
What I was thinking was based on Spyder's comments in that link and as well on random bits and pieces I've read in the various threads. The general notion is that a slowing in price velocity can alert one to anticipate change. Context is crucial but an example would be a spike bar. lj
OK, but as you say context is crucial - a spike bar is significant because of its H and L, not just its O and C. You could try it and see, but my sense is the measure you propose is too arbitrary to be consistently useful. Also, there are plenty of examples every day when increased velocity, like increased volume, marks the end of a move... - palinuro